Concept rendering of KITS’ planned Queen St. W store (CNW Group/KITS Eyecare Ltd.)
Kits Eyecare Ltd., a leading vertically integrated eyecare provider, plans to expand into its second retail location, expected to open in Toronto in Q1 2026. The space, located on Queen Street West, represents the company’s second retail showroom and follows the strong performance of KITS’ flagship location in Vancouver, it said.
Located in the heart of Toronto, the showroom will feature over 2,500 square feet of blended retail and café space and will feature a full-service onsite optometrist, providing comprehensive exams alongside KITS’ acclaimed eyewear collections. The Toronto location serves as a cornerstone of KITS’ national omni-channel strategy, giving customers across the Greater Toronto Area the opportunity to try on frames in person, pick up online orders, and access same-day service on select prescriptions, said KITS.
KITS said its decision to expand into Toronto is driven by the momentum of its Vancouver flagship. Since opening in July 2021, the Vancouver store has sold more than 23,000 pairs of glasses, with approximately 35% of customers opting for premium lenses such as progressives, polarized, or transitions. Recent performance continues to accelerate, with the store averaging 300 frames sold per week quarter-to-date. Same store sales continue to grow at well over 50% year-over-year, with gross margin of over 50%.
Roger Hardy
“KITS has entered its strongest growth phase to date,” said Roger Hardy, Co-Founder & CEO. “Opening our Toronto Flagship in the heart of the country’s largest city is a major brand milestone.
“This new store brings the entire KITS experience to life – the quality, the technology, the value – all in one place. We’re thrilled to welcome Toronto customers and continue building the fastest-growing optical brand in the world.”
Toronto represents the single largest optical market in Canada, with a diverse, digitally engaged population and strong demand for accessible, high-quality eyecare. The new location will serve as a blueprint for future KITS retail expansion across Canada, added the company.
As Black Friday arrives this week, the Canadian retail landscape reflects a set of converging forces that reveal as much about national sentiment as they do about consumer behaviour. What follows is a summary of the latest reporting from Retail Insider, examining how Canadians are preparing for the most consequential shopping period of the year and the tensions shaping the way they spend. Together, the data suggests a retail environment undergoing rapid cultural and economic recalibration, one defined by values-driven purchases, strategic deal-hunting, and a renewed reliance on physical retail spaces.
In one of the most striking shifts ahead of the weekend, Square’s new survey reveals a decisive turn toward localism. According to reporting in Retail Insider’s “Canadians set to paint Black Friday Maple Leaf Red this year,” 62 percent of Canadians intend to allocate more of their holiday budgets to locally owned retailers, reflecting what the company’s chief marketing officer calls a deepening “pride in supporting neighbourhood businesses.” More than half of those surveyed say they are willing to pay up to 50 percent more to buy Canadian, a sharp contrast to the era when Black Friday served mainly as an annual migration to U.S. e-commerce giants.
The turn inward is revealing, particularly given the economic pressures of the year. Canadians have seen higher food prices, lower discretionary spending, and broader macroeconomic strain. Yet, the willingness to favour local businesses even at a premium suggests a reframing of value: shoppers are now attaching emotional and community significance to their purchases. The survey’s findings on restaurants add to that narrative. Sixty-six percent of Canadians say they are supporting more neighbourhood-owned restaurants than they did a year ago, and a significant majority note that these establishments feel more community-rooted and hospitable. If Black Friday once represented the height of transactional spending, 2025 is bringing something closer to relational commerce, where supporting local businesses is seen not as a luxury but a civic gesture.
This shift toward neighbourhood economies sits alongside another trend: a resurgence in traditional retail destinations. JLL Canada’s annual holiday survey, captured in Retail Insider’s “JLL Canada Holiday Retail Survey: Less on gifts, more on experiences, self-treats, and shopping centre visits,” shows that 90 percent of Canadians plan to visit a shopping centre this season. While malls once feared permanent displacement by digital commerce, they are increasingly reclaiming their status as community hubs. As JLL’s Paul Ferreira puts it, holiday errands are turning into “holiday outings,” with shoppers deliberately weaving dining, entertainment, and browsing into each trip. This movement aligns with the broader shift toward experience-driven spending: even as Canadians plan to spend 8 percent more this season, nearly all of the increase is flowing into experiences and non-gift items such as food, décor, and seasonal activities.
The act of going to the mall appears to carry renewed purpose. With 87 percent of Canadians planning to dine out and nearly half planning hotel stays, the holiday season is no longer framed simply around consumption, but around time, connection, and self-treats. The same survey finds that 56 percent of Canadians plan to buy themselves clothing or shoes, a notable rise in self-gifting that mirrors global trends. While gift-giving to others has dipped, the desire to mark the season through experiences and personal indulgences has grown stronger. Black Friday may act as an entry point, but the season’s centre of gravity seems to have moved to the emotional and social dimensions of consumption.
Still, even as Canadians express pride in shopping locally and a desire for experiences, another layer of behaviour points to deliberate frugality. Vividata’s new consumer study, detailed in Retail Insider’s “How Canadians shop Black Friday 2025,” describes Black Friday shoppers as highly strategic. Many are blending social discovery with deal-chasing, using social platforms, trusted recommendations, email coupons, and resale marketplaces to navigate the season. Shoppers are not merely scrolling for entertainment; they are curating an always-on cycle of inspiration and comparison, one that allows them to move from discovery to purchase “in the same moment.”
The numbers reveal a bargain-hunting public that remains acutely price-sensitive. Seventy percent say they are always looking for special offers, 64 percent are seeking the lowest prices, and nearly half will switch from a favourite brand if another offers a better deal. The rise of second-hand platforms as part of the holiday mix is especially pointed. According to Vividata, 23 percent of Canadians have recently increased their use of resale marketplaces, and Black Friday and Cyber Monday shoppers now spend an average of $376 a month online, much of it on clothing and accessories. The topline traffic numbers reinforce the digital giants’ dominance: Amazon claims 82 percent monthly unique visits among Canadians, while Temu reaches 57 percent and Walmart 42 percent.
This duality — pride in buying Canadian, paired with a hunt for the best value — is not contradictory so much as emblematic of the moment. It reflects a consumer who is both emotionally attuned and economically cautious, someone willing to pay more for local goods but also determined to stretch every dollar elsewhere.
That balance is echoed in new findings from Xero, covered in Retail Insider’s “Black Friday Trends: Canadians Support Small Businesses.” The report is clear: Canadian consumers are expected to spend nearly $9.3 billion over the Black Friday–Cyber Monday weekend, and most intend to keep small businesses at the centre of their plans. The level of intentionality is notable. Eighty percent of Canadians say they feel pride when shopping small, and 70 percent are willing to pay more for a product or service if it supports a local business. This suggests that even in a season where price is a top motivator, values remain a defining influence.
Xero’s findings also offer a rare moment of optimism for the nation’s small business economy. Despite a weakened economic backdrop, one in four Canadians plan to increase their spending with small businesses this season. The report notes that holiday sales can account for 20 to 30 percent of annual revenue for many local businesses, making this consumer shift a potential lifeline. The demographic patterns are also revealing.
Boomers and women are leading the push to shop small, but even younger Canadians — long characterized as convenience-driven — are adopting more community-oriented behaviours. The report positions this moment as a potential turning point for small businesses heading into 2026, especially if even 10 percent more spending shifts toward local operators.
If there is a single unifying thread across the research, it is that Black Friday continues to anchor the season. The Retail Council of Canada’s latest data, captured in Retail Insider’s “Black Friday set to surge as Canadians shop smarter,” reinforces the day’s centrality. Eighty-four percent of Canadians now say Black Friday is their most important shopping day, and more than half begin researching one to three weeks in advance. But the survey also shows that Black Friday is no longer a single moment; it has become the starting line for a multi-week cycle of price comparisons, promotions, and purchase planning. Consumers are selective, methodical, and under more stress than in previous years, with 57 percent reporting that holiday shopping feels more stressful than it did last year.
The RCC data also reveals strong loyalty to Canadian-made goods, even as price remains the dominant factor in purchase decisions. Eighty-six percent plan to shop close to home, and 84 percent will look for Canadian-made items, but the desire for value continues to override other considerations. The regional breakdown offers additional nuance, with Alberta and British Columbia showing the strongest year-over-year spending increases and Quebec the sharpest decline. The national story, however, is one of determination: Canadians plan to celebrate, even if it means stretching each purchase further than they once did.
Across all five reports, Black Friday emerges as a mirror of Canadian consumer identity. It reflects a desire to support local businesses, a renewed enthusiasm for shared experiences, and a deeply pragmatic approach to spending. Shoppers are treating the season as both an economic exercise and a cultural one, weaving together pride, frugality, and community into a single retail narrative.
“In Q3 2025, Happy Belly Food Group achieved its 14th consecutive record quarter and third consecutive quarter of positive net income from operations,” said Sean Black, Chief Executive Officer. “These milestones-including segmented EBITDA for the QSR division surpassing $1.0 million in Q3 and royalties & fees for the QSR division also surpassing $1.0 million in Q3, both marking firsts for the Company-reinforce our reputation as a disciplined, high-growth multi-brand restaurant operator with a predictable growth model.
“They highlight our ongoing mission to become Canada’s leading acquirer and scaler of emerging food brands while driving long-term shareholder value.
“We have a lot to be proud of as a team, and as an organization. We have truly built a predictable and repeatable growth model that saw our system sales more than double, driving a 125% increase versus the same quarter last year. We successfully added 12 new restaurant locations in Q3 to the Happy Belly portfolio through a mixture of organic and inorganic growth, with another 2 restaurant locations added through our organic growth model so far in Q4, giving Happy Belly 75 operating locations in total.
“I would like to personally congratulate all brand leaders, franchisees, team members and cross functional teams for a truly great quarter. The team continues to execute our aggressive growth plan which has led to significant growth in Q3. System sales reached $19.2M (+125%), and total revenues of $7.2M (+188%) supported by our adjusted EBITDA reaching a new high of 10.4% in Q3.
“Our core principles have been the 3P’s: People, Product and Process, while staying operationally and financially disciplined throughout our execution plan. These strong results are a testament to the team-oriented culture we have built at Happy Belly. Our management team and brand partners are working together to support our franchisees in national and US expansion as we anticipate to deliver significant organic growth beyond our original expectations in 2026. With a clear focus on growth, we believe our best chapters are still to come.”
Q3 2025 Financial Highlights
System wide sales across Quick Service Restaurants (QSR) totaled $19.2M in the third quarter of fiscal 2025, up 125% versus the same quarter last year (2024 – $8.5M). The increase is attributed to organic baseline restaurant growth, alongside increased restaurant count, which reached 73 operating restaurants at the end of Q3 2025, up 109% versus 35 in the prior year.
Total operating revenues, vendor rebates and interest income totaled $7.2M in Q3 2025, up 194% versus the same quarter last year (2024 – $2.5M), and for the nine months ended September 30, 2025, $16.6M up 149% from 2024 (2024-$6.7M).
Year-over-year growth was driven by continued sales growth in both the Quick Serve Restaurant (QSR) and Consumer Product Goods (CPG) segments, multiple business acquisitions in the past twelve months, and new restaurants being added to the portfolio (12 additional restaurants during Q3 2025).
Total product sales totaled $6.0M in the third quarter of 2025, up 224% versus the same quarter last year (2024 – $1.9M). In addition, royalties and franchise fee revenues reached $1.1M during the quarter, up 297% from the prior year (2024 – $0.3M), which was driven by an increase in royalties collected from 55 franchised restaurants in the system.
Adjusted EBITDA reached $0.7M or 10.4% in the third quarter of fiscal 2025, up from $0.1M or 4.2% in the same quarter last year. During the third quarter of fiscal 2025, net income from operations was $0.3M up from a net loss of $0.1M in the same quarter of 2024.
Segmented EBITDA for the QSR division surpassed $1.0M in Q3, marking a first for the Company.
Royalties & Fees for the QSR division surpassed $1.0M in Q3, marking a first for the Company.
Net working capital remains healthy at $2.8M as of September 30, 2025 (December 31, 2024 – $3.3M). Total cash and cash equivalents were $3.3M as of September 30, 2025 (December 31, 2024 -$3.5M). Furthermore, cash flows before non-cash working capital was positive $0.7M in Q3 2025 up from $0.1M in the same quarter last year.
In the third quarter, the Company generated $0.8M in cash flow from operating activities up from negative $(0.2)M in the same quarter of 2024.
During Q3 2025, Happy Belly added 12 restaurants to its growing portfolio. Heal Wellness opened two new locations in Aurora and Kensington. Rosie’s Burgers opened a new location in Bridgeland. The acquisition of Salus Fresh Foods added nine new locations in the GTA. Following the close of Q3, Happy Belly further expanded by opening iQ foods on Avenue Rd and Yolks on Bloor St West. These additions bring the total number of restaurants in the Happy Belly portfolio to 75.
Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.
Equifax Canada’s Q3 Market Pulse Quarterly Consumer Credit Trends and Insights shows a renewed rise in missed payments heading into the holidays, with 1.45 million consumers in Canada missing a credit payment in Q3, more than 46,000 higher than in Q2.
The national 90+ non-mortgage balance delinquency rate reached 1.63 per cent, up 14 per cent year-over-year. Total consumer debt climbed to $2.62 trillion (+3.4 per cent year-over-year), while average non-mortgage debt per consumer rose to $22,321, up $511 from a year ago, said the company.
Rebecca Oakes
“Earlier this year, we saw tentative signs of stabilization, however Q3 data indicated some renewed stress, especially in younger households and homeowners in urban centres,” said Rebecca Oakes, Vice-President, Advanced Analytics at Equifax Canada.
“The holiday season is a time when credit card spending typically rises $300–$500 per consumer and previous Equifax data shows that missed card payments increase by roughly 7 per cent come January. Spending over the next few weeks will be a decisive moment for many consumers in Canada.”
Financial stress for younger consumers, especially in certain cities Financial stress remains greatest among younger people (aged 18-35 years old) with 1 in 20 missing a credit payment during Q3. Among 26–35-year-olds, the 90+ days non-mortgage balance delinquency rate reached 2.45 per cent, up 20.51 per cent year-over-year. In addition, the delinquency rate for 18–25-year olds stood at 2.11 per cent, up 16.58 per cent year-over-year, said Equifax, adding that by contrast, older consumers in Canada recorded smaller increases, including 56–65 year olds at +9.95 per cent, and for the 65+ cohort at +4.36 per cent.
“Several large urban centres posted increases in non-mortgage delinquency, including Toronto which reached 2.27 per cent (+19.58 per cent year-over-year); Vancouver at 1.27 per cent (+18.18 per cent); and Ottawa at 1.55 per cent (+17.61 per cent). Smaller increases were seen in Edmonton (+11.23 per cent) and Halifax (+12.51 per cent), as well as cities in the Prairies and Atlantic regions,” it said.
Missed payments Missed payments were concentrated among non-mortgage households. Of the 1.45 million consumers who missed a payment, 84 per cent (about 1.21 million) did not hold a mortgage. For mortgage holders, roughly 1 in 35 missed a payment compared to 1 in 37 at the end of Q2, noted Equifax.
“The data shows there are still emerging financial challenges for older consumers, especially those with a mortgage in cities such as Toronto,” added Oakes. “Mortgage payment shock is still contributing to rising missed payments on credit cards, personal loans, and even on mortgages themselves.”
Credit use and card behaviour heading into year-end Non-mortgage debt rose just over 5 per cent year-over-year, and although growth was slower than prior years, pick up in the housing market led to a $31.8 billion increase in mortgage balances versus Q2. Inflation-adjusted card spend increased 1.6 per cent, led by Nunavut (up 5.5 per cent), Quebec (up 4.0 per cent), and New Brunswick (up 2.8 per cent). Overall card payment health improved modestly—fewer consumers paid only the minimum and more consumers paid their balance in full—however those top line numbers mask a growing strain among younger consumers in Canada. Minimum-payer rates increased for consumers under 25, as well as consumers aged 26–35-years old, and those in higher-cost provinces such as Ontario and British Columbia, shared the report.
“Since the pandemic, we’ve seen periods where consumers proactively curb credit use as finances tighten. We observed younger consumers pulling back on card spend last quarter, and it will be important to see whether that discipline holds through the holiday season,” concluded Oakes.
Consumers aged 46+ moved in the opposite direction with average card spending rising to $2,342 in Q3, up $48 year-over-year, said the report.
Auto industry facing new headwinds
Equifax said the auto industry has experienced multiple challenges over recent years with rising vehicle prices and high interest rates curbing consumer demand during 2022 and 2023. In Q3 2025 renewed activity did continue with new auto loan volumes rising 4.8% compared to 12 months prior, however, auto lenders are facing an escalating threat from synthetic ID fraud leading to increasing levels of auto loan stacking losses. This type of fraud accounted for an estimated 1/3 of auto loans (over $10k) opened in Jan 2025 which missed payments in Q3 and is contributing towards an estimated $450 million loss for auto lenders per year.
Age Group Analysis – Debt & Overall Balance Delinquency Rates (excluding mortgages)
Average Debt (Q3 2025)
Average Debt Change Year-over-Year (Q3 2025 vs. Q3 2024)
90+ Delinquency Rate ($) (Q3 2025)
Delinquency Rate Change Year-over-Year (Q3 2025 vs. Q3 2024)
18-25
$8,635
4.46%
2.11%
16.58%
26-35
$17,603
0.68%
2.45%
20.51%
36-45
$27,263
1.03%
1.97%
15.99%
46-55
$34,987
1.95%
1.43%
14.13%
56-65
$29,772
4.80%
1.16%
9.95%
65+
$15,121
3.75%
1.13%
4.36%
Canada
$22,321
2.34%
1.63%
14.17%
Major City Analysis – Debt & Overall Balance Delinquency Rates (excluding mortgages)
City
Average Debt (Q3 2025)
Average Debt Change Year-over-Year (Q3 2025 vs. Q3 2024)
90+ Delinquency Rate ($) (Q3 2025)
Delinquency Rate Change Year-over-Year (Q3 2025 vs. Q3 2024)
iStore Express at Ottawa International Airport. Photo: iStore
iStore is preparing for its next phase of growth in Canada and the United States with a strategic expansion plan that includes new airport stores and a rapidly growing automated retail program. The Montreal-based tech retailer, known for its blend of stylish product curation, airport-focused operations, and high-visibility merchandising, is scaling in response to rising demand for convenient travel tech solutions. CEO Joel Teitelbaum says the company is positioned for a strong year ahead as consumer expectations shift and automated retail gains momentum in airports across North America.
In an interview with Retail Insider, Teitelbaum detailed the company’s current footprint, operational model, and plans for expansion, along with insights on the fast-evolving dynamics of airport retail. The iStore expansion strategy includes new store openings in major US airports beginning in 2026, a rollout of automated machines in Canadian airports including Toronto Pearson International Airport, and future growth into secondary airports, hotels, conference centres, universities, and hospitals.
Joel Teitelbaum
The company now operates nearly forty airport stores, with a network of more than fifty automated retail machines, and plans to reach forty stores early next year. Teitelbaum says the combination of travel retail, automated vending technology, and high-margin private label products is helping the brand scale in a category where margins are traditionally among the most challenging in retail.
A Growing Footprint Across North America
Teitelbaum says the company has reached a new milestone in its physical network. “We are almost at forty retail stores across North America. We will hit thirty eight next month, and we expect to reach forty early next year,” he explained. The newest addition will be iStore’s second location in Detroit, opening in December.
iStore and its diffusion banner, iStore Express, now operate thirty eight stores, with nine Canadian locations in major airports including Montreal, Toronto, Vancouver, Edmonton, and Ottawa. Teitelbaum notes that airports remain iStore’s primary focus, although the retail model continues to evolve due to the unique environment in which airport retail operates.
Airport operations require constant adaptation as terminals redevelop, gates shift, and non-retail uses are reallocated. Teitelbaum says that over the years the company has opened and closed nearly as many stores in Canada as it has launched, due in part to continual airport reconfigurations. Despite this, iStore expansion remains an ongoing priority, particularly as airports continue upgrading their commercial offerings.
iStore at Salt Lak City International Airport. Photo: iStore
Inside the iStore Retail Model
iStore operates under two fascias. The main iStore brand consists of fully built-out larger stores designed for high-traffic areas, while iStore Express locations occupy smaller footprints with lower traffic volumes. The model allows the company to operate efficiently in varied locations while maintaining brand presence in key terminals.
The company does not operate its stores directly. Instead, it partners with major travel retail operators such as Lagardère Travel Retail, a global leader with more than five thousand stores in fifty countries. “These companies are expert in travel retail. We do not actually own or operate any of our retail spaces. Our partners handle operations, and our model fits airport retail because it aligns with the RFP system airports use,” Teitelbaum explained.
The RFP process creates long lead times for new stores. Teitelbaum notes that iStore opened a new store in San Diego last month that was awarded in 2021. This makes long-range planning essential. Despite these constraints, the company expects to open at least six new stores in 2026, including locations in Atlanta, Dallas, Chicago O’Hare, San Antonio, and San Jose, with a potential sixth site still under wraps.
Automated Retail Gains Traction
A defining pillar of the current iStore expansion strategy is automated retail, which Teitelbaum notes has quickly become a core component of the company’s growth. iStore now operates fifty one automated machines, thirty nine in the United States and twelve in Canada.
The program accelerated during the pandemic after Best Buy exited automated vending. iStore saw an opportunity to scale in airports and partnered with the former operator of Best Buy’s vending program to convert the machines and deploy new ones. Between 2022 and 2024, the company established forty machines in US airports alone.
In Canada, the strategy is expanding even more quickly due to manufacturing advantages. “In Canada, the machines themselves are produced here. It is a made-in-Canada concept end to end,” Teitelbaum said. The first two Canadian machines launched in Montreal in May, timed just ahead of Grand Prix weekend. Soon afterward, the company partnered with Toronto Pearson International Airport through a competitive RFP process to deploy ten new machines across the airport.
At Pearson, iStore works with Express Retail Group (ERG), which oversees daily operations, replenishment, and maintenance. The machines are powered by smart vending technology from Mississauga-based Signifi Solutions. As of late August, all ten were installed and active in terminals 1 and 3.
“So far, so great. Customer feedback has been excellent, and performance is exceeding our expectations,” Teitelbaum said. “About half the mix is audio. That category dominates airports. The next most important category is core accessories, including cables, chargers, and power banks.”
Automated iStore Retail at Pearson International Airport in Toronto. Photo: iStore
Product Strategy and the Importance of Margins
iStore’s ability to scale in airports relies heavily on strategic merchandising. Travel retail is one of the most expensive retail environments in North America due to concession rent structures. Fixed rent has all but disappeared after the pandemic, replaced by pure revenue-based concession agreements. In this environment, hardware products create substantial challenges because margins on phones and tablets can be single digits.
“It is all about having the right formula. If you go in and sell only hardware, you are guaranteed to lose money,” Teitelbaum said. “Margin becomes critical, and that is why private label is so important.”
The company has developed more than thirty SKUs under the iStore brand, which serve as high-margin margin “mix balancers” in both stores and automated machines. Accessories, which represent about 85 percent of the assortment, help support profitability while complementing branded offerings like Apple, Beats, and Bose.
The category mix is continually refined. Audio dominates due to travel patterns, while power banks have become increasingly important because of shifting rules around battery storage on flights. Teitelbaum says iStore works closely with TSA and other regulatory bodies to ensure its batteries are fully certified for air travel.
iStore Express at Montreal International Airport. Photo: iStore
Understanding the Airport Customer
Airport retail demographics differ significantly from those in traditional retail environments. Customers are not there to shop. Their journeys are fixed, and their time is limited. This makes merchandising, location, and convenience paramount. Teitelbaum explains that airports analyze passenger flows carefully and allocate space accordingly. Business travelers behave differently than vacation travelers, and domestic passengers differ from international ones.
Despite these variables, iStore benefits from a built-in baseline of high-income, high-intent consumers. “Everyone has been pre-selected in a sense because they are traveling,” he said. “Airport employees also form part of our customer base, and we have programs that target them.”
Airport stores often operate from 6 a.m. to midnight, far exceeding mall hours, which creates staffing challenges. Employees require additional screening, bonding, and transportation accommodations due to airport locations. These operational demands further reinforce the case for automated retail, which requires minimal staffing.
Filling Gaps with Automated Convenience
Automated retail also allows iStore to reach locations where full stores are not viable. iStore expansion plans include additional airports across Canada in 2026, particularly in secondary and tertiary cities where retail offerings are limited. Halifax, Quebec City, Winnipeg, and Victoria are among the prime opportunities.
Teitelbaum says automated retail may eventually extend beyond airports into hotels, universities, conference centres, and hospitals. “We have tested a few non-airport locations in the US. The testing is ongoing. We think automated retail adoption is accelerating faster than in the past,” he noted.
Retail loyalty programs in Canada are entering a period of rapid transformation as both economic pressures and rising consumer expectations reshape how shoppers engage with brands. A new national study from Deloitte Canada, authored by Ridhima Gupta, Director in Deloitte’s Strategy, Risk, and Transactions group, finds that loyalty is becoming one of the most important competitive levers in retail. It also highlights a widening gap between the retailers that excel in loyalty and those that are struggling to keep up.
In an interview with Retail Insider, Gupta said Canadians’ enthusiasm for loyalty has been building for decades and shows no signs of slowing. “We’ve always said Canadians are loyalty obsessed,” she explained. “It started with the big coalitions when you could get Air Miles and the like. Everyone had cards and was swiping their cards.
Ridhima Gupta
Canadians are also point supporters, so they love points and they love collecting their points and saving them.”
Her comments reinforce Deloitte’s findings that Canada leads the world in loyalty participation, with more than 95 percent of Canadians enrolled in at least one program. As inflation continues to pressure household budgets, loyalty has shifted from a nice-to-have to a central part of how Canadians shop, save, and determine which brands win their business.
A Market Defined by High Expectations
Deloitte’s research found that 70 percent of customers say they will spend more with brands that offer strong loyalty rewards, a trend that becomes even more pronounced during the holiday season. With many shoppers seeking more value for every dollar spent, loyalty programs help determine not only where consumers shop but how much they spend when they are there.
Gupta believes economic conditions are accelerating this shift. “Canadians are hurting and the dollar isn’t going as far as we all want it to,” she said. “Loyalty is more often than not looked at as a way to help and to actually get more value from these organizations that we’re all so highly engaged with.”
This connection between economic pressure and the desire for value helps explain why retail loyalty programs in Canada are evolving so quickly. Consumers expect more than simple earn-and-redeem mechanics. They want personalization, exclusive access, and new ways to engage with their favourite retailers, which in turn requires retailers to sharpen the value proposition of their programs.
Leaders and Laggards in a High-Performance Market
One of the central findings in Deloitte’s report is the significant divide between loyalty leaders and those at the beginning of their loyalty journey. Only 25 percent of Canadian retailers are considered leaders, while 44 percent are considered lagging.
For Gupta, the difference often begins with whether retailers have a program at all. “There were a number of organizations, over 40 percent, where they’re at very early stages in their loyalty journey,” she said. “That is very challenging because all the good things that we know exist for organizations when it comes to having loyalty, business value, and customer value, they’re not able to access that.”
Among retailers that are already established in loyalty, Gupta sees common characteristics that define leadership. “The first is being clear on value proposition and the purpose of the program,” she said. “It’s very clear in terms of who the program is trying to touch and what customer segment it serves, where they’re trying to retain customers or acquire customers. Everything that’s part of the program ladders up to that.”
Leaders also make early and ongoing investments in people, processes, and technology. Many high-performing programs, according to Deloitte, are now powered by customer data platforms and artificial intelligence to reduce friction, improve personalization, and deliver tailored experiences at scale. This focus on advanced data capability is one of the defining characteristics of the programs that outperform.
The Push Toward Personalization and AI
Personalization has become one of the most important expectations for consumers, yet the Deloitte study finds that only 45 percent of brands currently offer personalized loyalty experiences. More than 70 percent of customers expect it.
Gupta believes AI will play a key role in elevating the next generation of retail loyalty programs in Canada. “Some of the leaders today are really focused on personalization and AI technology,” she said. “CDPs, customer data platforms, and AI are some of the leading capabilities that we’re seeing those programs really lean into.”
She added that personalization must be balanced carefully with privacy. “Consumer expectations are increasing around personalization, but their awareness of how their data is being used is increasing at almost the same rate,” she noted. She emphasized the importance of consulting AI and privacy experts to ensure that personalization is delivered in an ethical and secure way.
Keeping Loyalty Fresh and Engaging
For Gupta, one of the most important points in the Deloitte report is that loyalty programs must continuously evolve to stay relevant. “The Canadian consumer expects something new and exciting,” she said. “You can’t let your loyalty offering get stale.”
This focus on freshness has driven a wave of experimentation across the sector. Programs are introducing new features, new layers of gamification, and new ways for customers to play within the system. Gupta said the most engaged consumers are actively looking for ways to navigate programs creatively, which puts pressure on retailers to maintain the novelty of their offerings.
The importance of constant innovation has also helped drive the rise in new types of partnerships and business models. As retailers search for ways to expand the value of their programs, they are entering into alliances that improve earn-and-redeem potential or open the door to new experiences.
Partnerships That Resonate With Canadian Shoppers
The Deloitte report highlights three categories of partnerships that continue to resonate most strongly with Canadians. “The ones that provide everyday value to consumers will always be in demand,” Gupta said. She emphasized that customers are particularly excited about partnerships that allow them to earn points more broadly and use them in multiple ways across a larger ecosystem.
The second type centres on exclusive experiences. “When partnerships provide experiences that the consumer would not otherwise have, that is very compelling,” she said. This includes concert tickets, travel experiences, and other high-value offerings that shoppers perceive as special or rare.
The third partnership category is values-based. Gupta has seen a notable rise in collaborations rooted in shared brand or national values. “There has been a movement of Canadian organizations coming together,” she said. “I think we will continue to see more values-based partnerships, whether it’s for causes that we really care about or values we are accustomed to.”
These diverse partnership strategies illustrate how retail loyalty programs in Canada are increasingly built around emotional and experiential value rather than strictly transactional rewards.
Measuring ROI in a Complex Loyalty Landscape
One of the challenges highlighted in Deloitte’s study is the difficulty many retailers face when measuring the return on investment of their loyalty programs. Gupta said leading brands start with clear objectives. “Loyalty can do multiple things for a business. It can improve customer retention. It can improve brand resonance. It can get customers to behave differently,” she explained.
Because these objectives vary, so do the associated KPIs. Strong programs build measurement frameworks at the very beginning, incorporating metrics such as customer lifetime value, channel shift, cost efficiencies, and brand lift. Without a clear objective and dedicated KPIs, retailers struggle to understand the program’s performance.
Gupta said the retailers that excel in measurement are those that know precisely what they want to achieve and design their programs around those goals.
Looking Ahead to 2026 and Beyond
As the interview concluded, Gupta said that activity in the loyalty space continues to ramp up. “There is a tremendous amount of interest from organizations in continuing to put loyalty out there,” she said. “There is a ton of activity taking place around innovation of existing programs and partnerships.”
She expects this momentum to accelerate in the coming year. “The game is continuously evolving,” she said. “A big part of loyalty has always been personalization, and I am excited to see how AI will enable organizations to personalize on a one-to-one level and get even smarter with their promotional spend. There is a huge convergence between loyalty and retail media, and I’m excited to see how those things come together.”
Gupta emphasized that retailers should think about loyalty in the broadest sense. “Loyalty is an outcome,” she said. She added that because Canadians are so deeply engaged with loyalty, some of the most exciting innovation happening globally is emerging in the Canadian market. “I find that inspiring, and I hope retailers continue on their journey so we continue to lead on a global scale.”
RONA inc., one of Canada’s leading home improvement retailers, operating and servicing over 425 corporate and affiliated stores, is launching an advertising campaign to raise awareness about gender disparities in trades in the Canadian construction industry.
This campaign was initially pitched by RONA as part of last year’s IDEA Competition, an annual contest organized by The Institute of Canadian Agencies (ICA) and powered by Bell Media, said the retailer.
Each year, the IDEA Competition invites agencies and brands to propose a new campaign. The most compelling creative concept among all submissions wins a $1M Bell Media package to bring the idea to life. RONA, along with Sid Lee, its creative agency, submitted its Build Boardscampaign proposition at last year’s competition, which was held under the theme “gender equity in Canada” to promote inclusivity, diversity and equity in advertising, said RONA.
Now visible across the Greater Toronto Area until December 21, RONA’s campaign features out-of-home billboards near new-build construction sites to support more women getting into trades. Each board leads to the MoreWomeninTrades.ca microsite, which aggregates tailored resources and grassroots initiatives tailored to women and girls, and made possible through RONA’s collaboration with the Canadian Home Builders’ Association (CHBA), the voice of Canada’s residential construction industry. Together, they are driving real change by promoting resources that help enhance the leadership and mentorship skills of women in skilled trades, going beyond raising awareness, it added.
“We felt it was important for RONA to leverage its role as a trusted leader in construction and home improvement to highlight this reality and show women they belong in our industry. As the Executive Sponsor of our Pride Business Resource Group and a woman myself, I know just how crucial it is to promote diversity, inclusion and equity, not just within our organization, but in our industry as well.”
RONA inc. is one of Canada’s leading home improvement retailers, headquartered in Boucherville, Quebec. The RONA inc. network operates and services over 425 corporate and affiliated dealer stores under the RONA+, RONA, and Dick’s Lumber banners.
House of Braids, Midtown Plaza, Saskatoon. Photo: Mario Toneguzzi
The owner of House of Braids says expanding into Midtown Plaza has helped the long-running Saskatoon business grow, despite past challenges with relocation and theft.
Ngone Dione, who founded House of Braids in 1997 after moving from Montreal, said she opened the Midtown location a little over two years ago. It is the newest of her four Saskatoon stores, which include shops on Second Avenue, Confederation Mall and Cloud Nine.
She said she originally operated a small space in Confederation Mall for several years before opening a larger store there, but the expansion brought difficulties.
“We start having problems when we opened that big location. Then, it was a lot of shoplifting coming,” she said. The issues led her to downsize back into a smaller space.
Ngone Dione
Dione said she later discovered the vacant Midtown unit she now occupies.
“I’m like, Oh, let me see if I can rent this place to put my stuff here, and then see how it goes,” she said. After contacting mall management, she opened the location within three weeks.
The move allowed her to expand further. When a neighbouring salon closed, she took over the space, connected it to her existing store and created an area focused on clients experiencing hair loss.
“We opened that to be like a wig store, you know, for people with cancer, hair problems and stuff like that,” she said.
Although she later returned to a smaller unit when the lease expired, Dione said she remains satisfied with Midtown.
“So far it is good. I don’t mind. I really like the Midtown location,” she said.
Dione said House of Braids began with braiding and extensions, drawing on her training in Montreal and her observation that Saskatoon needed a specialized service. She said regulatory limits in Saskatchewan initially restricted her to braiding because she had not studied locally.
“Then I decided to go back to school,” she said, completing her training at MC College in 2007.
“We do everything, everything from extensions to cut to colour,” she said, noting she also works with people who have hair loss.
Ngone Dione
Dione said she has considered expanding to other cities, including Calgary, where some clients have encouraged her to open a location. But she said staffing remains a concern.
“My fear is not having somebody that can run it properly,” she said, adding she once tried operating a store in Prince Albert but found it difficult to manage from afar.
Despite those challenges, she said she is open to future growth. “Oh, yes, for sure,” she said of the idea of more locations, adding she has thought about franchising.
House of Braids, Midtown Plaza, Saskatoon. Photo: Mario Toneguzzi House of Braids, Midtown Plaza, Saskatoon. Photo: Mario Toneguzzi House of Braids, Midtown Plaza, Saskatoon. Photo: Mario Toneguzzi Ngone Dione
A sign encouraging shoppers to buy Canadian products at a liquor store in Vancouver on Feb. 2, 2025. Shoppers have been caught up in the buy Canadian fervour since U.S. President Donald Trump began threatening to apply tariffs on imports from Canada. THE CANADIAN PRESS/Ethan Cairns
Canadians are putting their loonies behind their “glowing hearts” this holiday season. According to a new survey released recently by technology company Square, 62% of Canadians said they plan to go “pro-Canada” this Black Friday – with 62% reporting they’ll allocate more of their holiday budgets to support locally-owned, neighbourhood retailers.
While Black Friday has long been a cross-border shopping moment, that tide is turning, added Square. The majority (61%) of Canadians believe their communities will focus on supporting local businesses this year, compared to previous years when 57% shopped interchangeably from U.S. and Canadian retailers.
Of those planning to allocate more of their holiday gifting and entertainment budgets to support Canadian-owned retailers this year, more than half (54%) are willing to pay up to 50% more to buy Canadian, said Square.
According to Square’s survey, the “Buy Canadian” movement is also playing out strongly in neighbourhood-based restaurants, cafés and bars:
66% of Canadians say they’re supporting more neighbourhood-owned restaurants than they did a year ago, and agree it “feels like a lasting, long-term change.”;
57% are making a special effort to meet friends and family at locally owned restaurants — a trend strongest among women (61%) and adults 35+ (59%);
82% say it simply “feels good” to support their neighbours and community-owned businesses;
7 in 10 Canadians report that local restaurants have a more homely feel (72%), are more likely to champion their communities (70%) and have friendlier staff (64%) who are “more likely to know my name” (53%).
Canadians will be able to see the power of local spending in real time beginning November 28 through Cyber Monday. Square and Afterpay will track Black Friday weekend transactions across its Canadian network, highlighting how communities nationwide support neighbourhood economies. To follow along, visit block.xyz.
Irvine said the momentum of consumers choosing to spend more of their holiday budgets at locally-owned, neighbourhood retailers “reflects a deep pride in supporting neighbourhood businesses and a growing recognition that every local purchase strengthens Canada’s economic backbone — its Main Streets.”
“Neighbourhoods are our North Star. When sellers thrive, neighbourhoods come alive and that’s the economy we’re excited to help build not just in Canada but around the world,” she said.
“Globally, we’re seeing a renewed movement toward neighbourhood commerce. Neighbourhood sellers want the same powerful tools as big enterprises — and Square’s role is to give them that competitive edge. From payments and payroll to marketing and analytics, we’re helping local entrepreneurs not just survive, but truly succeed by connecting them with their customers, staff and the community around them.
“This vision is shaping Square’s next chapter: deeper local investment in cities and neighbourhoods — ensuring every business, no matter their size, can compete on a global stage while staying rooted in their community.”
